factual

Under what circumstances can the Franchisor exercise discretion in the Bft franchise agreement?

Q: Under what circumstances can the Franchisor exercise discretion in the Bft franchise agreement?

- 17.3 **Franchisor's Discretion.** Except as otherwise specifically referenced herein, all acts, decisions, determinations, specifications, prescriptions, authorizations, approvals, consents and similar acts by Franchisor may be taken or exercised in the sole and absolute discretion of Franchisor, regardless of the impact upon Franchisee. Franchisee acknowledges and agrees that when Franchisor exercises its discretion or judgment, its decisions may be for the benefit of Franchisor or the System and may not be in the best interest of Franchisee as an individual franchise owner. Source: Item 23 — RECEIPTS (FDD pages 79–265)

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

17.3 Franchisor's Discretion. Except as otherwise specifically referenced herein, all acts, decisions, determinations, specifications, prescriptions, authorizations, approvals, consents and similar acts by Franchisor may be taken or exercised in the sole and absolute discretion of Franchisor, regardless of the impact upon Franchisee. Franchisee acknowledges and agrees that when Franchisor exercises its discretion or judgment, its decisions may be for the benefit of Franchisor or the System and may not be in the best interest of Franchisee as an individual franchise owner.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, Bft retains broad discretionary powers in its dealings with franchisees. Except where specifically stated otherwise in the franchise agreement, Bft can make decisions and take actions at its sole and absolute discretion. This discretion applies to all acts, decisions, determinations, specifications, prescriptions, authorizations, approvals, and consents.

This broad discretion means that Bft's decisions do not necessarily have to be in the best interest of the individual franchisee. Instead, Bft's decisions can be made for the benefit of Bft itself or the overall Bft system. This could potentially create conflicts of interest where a decision that benefits Bft or the system as a whole may negatively impact an individual franchisee's business.

Prospective franchisees should carefully consider the implications of this broad discretionary power. It is important to understand that Bft has the authority to make decisions that affect the franchisee's business, even if those decisions are not in the franchisee's best interest. Franchisees should seek legal counsel to fully understand the scope of Bft's discretion and how it may impact their rights and obligations under the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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